Earnings Reports for Jan. 16

January 6, 2006

Page 3 of 3

As a result, Intel officials said they expect first quarter
revenue to decline by about 15 percent from the fourth quarter,
though they maintained a positive outlook.

"We're trying to invest to ensure that we can increase the
differentiation from our competitors," Intel chief financial
officer Andy Bryant said in an interview. "But when the economy
turns up, we'll have the products that consumers will want."

Intel, which serves as a bellwether of the general health of the
personal computer industry, had joined other PC makers in December
in lowering its earnings forecasts, saying poor PC sales worldwide
would lead to flat growth for the fourth quarter.

"They're going to be held up by the same downside of the
economy that PC makers are struggling with," said industry analyst
Jack Gold of the Meta Group.